Make data-driven decisions to improve longevity

A non-medical home care provider that leveraged technology and human compassion to extend the health system into the home.

Categories

Health, Health Care Technology,

Product Gallery

Reasons for Shutdown

Strategy Issues

HomeHero cited 'Inferior' W-2 Employment Model.

While the company started out hiring caregivers on an independent contract, or 1099, basis, it switched to a W-2 model.
The changeover forced the company out of its “attractive” contractor model, where HomeHero could once charge 30% to 40% less than the industry average to its clients while also paying caregivers about 25% higher wages above industry averages.
HomeHero lost its core identity when they were effectively forced to terminate their working relationships with 95% of our 1099 caregivers and required to adopt an inferior employment business model.
In the process, HomeHero also lost a majority of its competitive differentiators in price, speed and scalability that allowed them to be so disruptive in 2014 and 2015, and it had nothing to do with competition.

Regulatory Issues

Regulatory changes affected the whole company.

In late 2015, regulatory changes that ensured home care workers were qualified for overtime and minimum wage protections changed everything.
The effect of this rule and rising minimum wages in California sharply increased home care prices, and live-in home caregivers essentially ceased to exist.

Direct Competitors and Similar Companies

Note: Direct competitors are defined by similarity score of more than 40%, while similar companies are defined by similarity score of less than 40%

No.	Image	Name	Similarity score	Description	Industry	Categories	Location	Ownership status	Entity type	Stage of development	Transactional model type	Defensibility moats	Last financing round	Total raised	Post-money valuation	Last financing date	No. of funding round(s)	No. of investors	Investors	Total revenue	Market capitalization	No. of investments	No. of acquisitions	No. of board seats taken	Competition	Management	No. of employees	Company reputation	Contact info	Operational status	Operational duration	Shutdown date	Founded date	Legal name	Former legal name(s)	Ticker
1.		Joany	28.9%	Healthcare concierge.	Information Technology & Services	HealthTech, Health, Machine Learning, SaaS	United States	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	50-100	-	-	Inactive	-	-	2014	-	-	-

Investors

No.	Name	Investor type	Description	Location	Preferred investment stage(s)	Stages invested in	Assets under management (AUM)	Investment range	Investment sweet spot	Preferred investment focus	Preferred investment geography	No. of investments	No. of lead investments	No. of follow-on investments	No. of co-investments	Portfolio companies	No. of exits	Total exit value	No. of failed investments	Loss on investments	No. of acquisitions	No. of board seats taken	No. of funds	Limited partners	Co-investors	No. of partners	Partners	No. of employees	Management	Board members	Founders	Investor reputation	Contact info	Entity type	Legal name	Former legal name(s)	Founded date	Ticker
1.	Graham Holdings	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
2.	Jason Calacanis	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
3.	LAUNCH Fund	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
4.	Social Capital	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
5.	Tencent Holdings	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Leadership

No.	Image	Name	Previous designation	Previous company	Previous biography	Previous profile type	Previous location	Experience	Education	Reputation	Current company	Current designation	Current biography	Current profile type	Current location	No. of investments	No. of exits	Total exit value	No. of board seats taken	Contact info
1.		Michael Townsend	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
2.		Kyle Hill	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Funding

No.	Financing date	Financing round	Total amount raised	Post-money valuation	Financial viability	Fundraising target amount	Remaining target amount	Financing type	No. of investors	Board seats	Lead investors	Entity type	Financing status
1.	28 Mar 2016	Pre-Seed Round	-	-	-	-	-	-	3	-	-	-	-
2.	30 Jun 2015	Series A	USD 20M	-	-			-	5	-	-	-	Completed
3.	30 Jun 2015	Private Equity Round	USD 19.75M	-	-	USD 20M	USD 250K	Equity,	3	2	-	-	Completed
4.	1 Sep 2014	Seed Round	USD 3M	-	-			-	2	-	-	-	Completed